stration 

800 Independence Avenue SW 

Washington, DC 20591 

Subject: Action Plan Submission Pursuant to FAA Policy and Procedures Concerning the Use of Airport Revenue (79 Fed. Reg. 66282-01, November 7, 2014). 

Dear Mr. Brown: 

This letter is in response to the request for an action plan for the City of Burbank, California to convey its intent to comply with the FAA ruling related to sales tax revenues derived from aviation fuel sales to the 

extent that ruling complies with federal law. This includes the process likely necessary to amend any non-compliant local ordinances to achieve compliance and the development of reporting requirements and tracking systems for specific information on aviation fuel tax revenues which in California means 

"jet fuel" as other types of aviation fuels are exempt from sales tax in this state. It is our understanding that the State of California will be submitting an Action Plan pertaining only to the state's portion of the 

tax. 

California's state and local governments already provide extensive services to airports including infrastructure maintenance, fire protection, public safety, environmental protection and noise 

abatement. These services and improvements are funded with general sales taxes and other taxes and 

the City of Burbank believes these local expenditures exceed the sales tax revenues derived from the 

sale of aviation fuel. 

Applicable Law that May Require Amendments for Compliance 

• California State Proposition 172 Public Safety Sales Tax- Prop 172 was approved by California 

voters in 1993, and imposes a half cent sales tax. Revenue is restricted to public safety purposes, and any change requires a statewide ballot initiative. A portion of Prop 172 revenue is allocated 

to cities based on the amount of property tax loss resulting from previous state budget 

balancing efforts. 

• Burbank Bob Hope Airport 

In addition to the locally imposed transaction and use tax rate, the City of Burbank receives revenues 

derived from the state sales and use tax rate for the purposes of (health and human services, criminal 

justice and transportation). These statewide voter-approved tax rates have been designated for specific 

purposes. It is our understanding that the state will provide an action plan response as it relates to 

necessary steps for assuring compliance related to these revenues. 

Reporting Requirement and Tracking System 

FINANCIAL SERVICES DEPARTMENT 

Administration I Accounting I Audit I Budget I Rtvcnue 

(818) 238- 5500 • Accounts Payablt (818) 238 - 5495 • Payroll • Purchasing (818) 238 -5491 (818) 238- 5466 
fuel. local agencies would need the state to change its tax reporting standards to require fuel sellers to 

quantify the amount of tax derived from the sale of aviation fuel to achieve compliance. Segregating 

and reporting the correct amount of tax revenue will further complicate California's already complex 

sales tax system and increase administrative costs. 

Transition Period 

If, contrary to current expectations, the City of Burbank determines that its expenditures on airport 

capital and operating costs do not exceed sales tax revenues derived from aviation fuel, it will consider 

legislative solutions. It is the intent of the City of Burbank to attempt to comply with the requirements 

set forth by the FAA ruling, to the extent it complies with federal law. The City of Burbank will notify the 

FAA of specific actions, if any, to be completed during the transition period and work with the state to 

ensure compliance before the December 8, 2017 deadline. 

Financial Services Director 

cc: 

Bob Frutos, Mayor City of Burbank 

Mark Scott, City Manager Burbank 

Amy Albano, City Attorney Burbank 

Jay Chamberlain, Department of Finance (Jay.Chamberlain@dof.ca.gov)